Wednesday, October 3, 2012

20121003 1051 Malaysia Corporate Related News.

Adventa's board has proposed that upon the completion of the sale of Adventa's glove business to the Low family and Southern Capital (via an SPV called Aspion Sdn Bhd), the company will declare a one-off distribution of RM1.70/share. This will be undertaken through a special dividend of RM1.30/share and a capital reduction and payment of RM0.40/share. The special dividend is not subject to any shareholder or regulatory approval. However, the capital reduction and payment requires shareholder approval. The entitlement date for the special dividend will be announced in due course once approval for the capital reduction and payment has been obtained. (Bursa Malaysia)

The Securities Commission suffered a setback yesterday when the Court of Appeal rejected the regulator's bid to disqualify a High Court judge from hearing a suit challenging conglomerate Sime Darby's controversial purchase of a 30% interest in property group E&O. The three-member Court of Appeal panel unanimously dismissed an application by the SC to force High Court Judge Abang Iskandar to recuse himself from hearing a suit brought by minority shareholder Michael Chow Keat Thye, who is seeking a court order to compel the watchdog agency to force Sime Darby to make a general offer for shares in the property concern after it acquired the commanding stake for RM776m in Aug last year. (Financial Daily)

Tenaga Nasional  has awarded a RM16.4m contract to Pestech International Bhd's joint venture to undertake a power project in Johor. Pestech said the contract was to supply and commission a 132KV and 33KV switchgear, transformer and ancillary equipment for the Bukit Siput extension in Johor. Work is expected to start within one month upon site possession and the completion date is 455 days. The joint venture comprises of its unit Pestech Sdn Bhd and Mega Linear Sdn Bhd. (StarBiz)

The emergence of high-frequency trading means the risk of financial shocks spreading fast is “greater than ever”, Datuk Seri Najib Razak, has warned. His comments are the first sign that some political leaders in emerging markets have started to become uneasy over the spread of high-frequency trading and possible systemic risks associated with it. Controversy about such high-speed electronic trading has been intensifying as regulators worry that there are insufficient risk controls to prevent markets spiralling out of control due to erroneous trades. Electronic trading is spreading rapidly to Asia as western institutions seek to trade higher-growth markets using the same technology that is used to deal in US and European markets. Datuk Seri Najib said the recession that followed the 2008 crisis had created volatility in commodity markets. "Nor has that threat of contagion been wholly contained, either. Our economies are more closely linked that they were in 1997 [during the Asian financial crisis],” he told a conference hosted by Khazanah, Malaysia’s sovereign wealth fund. “And with the opening up of markets and the emergence of high-frequency trading, the potential for regional shocks to spread fast, far and wide is greater than ever.” There is very little high-frequency trading on Bursa Malaysia, although foreign trading interest in its palm oil derivatives is growing. HFT is more common in Asia’s derivatives markets than in the region’s equity markets, where local stamp duty and relatively wide bid-ask spreads have deterred such trading. (Financial Times)

Bursa Malaysia expects the listing of DanaInfra Nasional Bhd's retail bonds by year end to bring about rapid growth of the  new product and the overall exchange traded bonds and sukuks (ETBS).CEO Datuk Tajuddin Atan said with the expenses of such issuances being given double deduction for a period of four years, ETBS are expected to grow rapidly and may attract foreign issuances out of Malaysia. DanaInfra's RM300m retail bonds will be the first ETBS to be listed on the local bourse. DanaInfra's retail bonds are to raise financing for the MRT projects. (BT)

Two new roads will be built along Tun Dr Lim Chong Eu Expressway to cater to the traffic heading to and from the  second Penang Bridge. State Public Works, Transportation and Utilities Committee chairman Lim Hock Seng said the two roads  - one connecting the first and second bridge while another connecting the second bridge to Batu Maung and Teluk Kumbar - will cost an estimated RM262m and RM161m respectively. " open tender for the projects is expected to be called by the end of the year." he said. The projects will be completed a year after the completion of the second Penang bridge in Sep 2013. Construction of the 16.9km second Penang bridge is ahead of schedule with c.85% of the works completed. The bridge costs RM4.5bn. (The Sun)

CIMB Group deputy CEO Renzo Viegas said "We're targeting to grow our credit cards by about 10% to 15% next year. We're the fourth largest player, in terms of loan base,". "The cards are consolidating but the spend is still there ... and then you have the debit card which is available to everybody. In more developed countries, the debit card (usage) is much higher than credit card, in terms of spending. "In about 3 to 5 years, I wouldn't be surprised if you have more people using their debit cards for spending rather than credit cards," he remarked. (BT)

Maybank has rolled out a new credit card, the Maybank World MasterCard, to gain a bigger market share of affluent consumers in Singapore. Citing data from the Inland Revenue Authority of Singapore (IRAS), Maybank said that the number of consumers in the income bracket of $100,001 and above hit 218,200 in 2010, growing 42% over a three-year period. The bank is looking to boost its total card base by 10 per cent within the first two years of the card's launch. Perks of the card - aimed at those with a minimum annual income of $120,000 - include a sizeable 19.7% discount at Shell petrol stations in Singapore, of which cardholders will be given an upfront 15.5% discount and the balance (4.2%) can be offset through accelerated rewards points against the final amount billed. Maybank is offering 10x rewards points for every $1 spent when customers dine at selected restaurants, including those under the Les Amis Group, or shop at merchants such as Palais Renaissance and DFS Galleria Singapore. In addition, cardholders also have complimentary access to private terminal JetQuay at Changi Airport. (Business Times Singapore)

Malaysia Airports (MAHB) has set up a JV company with a Qatari to undertake facilities maintenance at airports, including the new Doha International Airport. MAHB will hold a 49% stake in the JV. MAHB said it would enable the group to continue pursuing opportunities in the development, operation and management of airports overseas. (Star Biz)

AirAsia  is boosting connectivity from Kuala Lumpur to Sarawak and Sabah with additional frequencies to Bintulu, Kuching and Tawau. "The Kuala Lumpur to Tawau flights will be increased to 25 times weekly from the present 21 and takes effect on Nov 12. The Kuala Lumpur to Bintulu flights will be increased to 17 times weekly from 14 and operations commence on Nov 13," said AirAsia in a statement. The extra flights from Kuala Lumpur to Kuching will be available 16 times weekly from the current 12, beginning December 1, 2012 to February 5, 2013. The extra frequency to Kuching will be available with an all-in-fare from as low as RM98 one way. The extra frequency will operate on Mondays, Tuesdays, Thursdays and Saturdays. (Bernama)

Kejuruteraan Samudra Timur Bhd has secured a fresh contract from Petronas Carigali to provide tubular handling equipment and services. Samudra said the contract was for the D-21, Samarang Phase 2AD and Tangga Barat Cluster Development Phase 1 projects from Sep-2012 to Aug-2013. "There is no indication on the value of the contract in the award and it is subjective depending on the activities level by Petronas Carigali throughout the contract period," it said. Samudra also said Petronas Carigali had extended a contract to provide tubular handling equipment and services to the oil exploration company's drilling and workover programmes. The contract was extended by four months from Feb 23, 2013 to June 27 that year. (StarBiz)

The shipbuilding and ship repairing industry will generate 20k employment opportunities by 2020, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. "A challenge that we face in this industry is a shortage of human capital, with a number of high-value jobs being done outside Malaysia. Basic ship repairing and ship building is done in Malaysia but when it comes to the finishing touches, it goes elsewhere. This due to the lack of skilled manpower and we need to address it. "To date there are about 30k people working in this sector in Malaysia and it will increase to 50k by 2020," he said. (Starbiz)

Boustead Holdings Bhd unit, Boustead Naval Shipyard Sdn Bhd, has issued a letter of award (LOA) to Contraves Advanced Devices Sdn Bhd (CAD), in relation to the RM203.79m contract for second generation patrol vessels/littoral combat ships. CAD is a subsidiary of  Boustead Heavy Industries Corp. The LOA covers an implementation period of up to 10 years. (Bernama)

Naim Holdings  aims to move into real estate investment trust (REIT) business with properties en route for launching this year of gross development value (GDV) of up to RM400m. Its corporate services senior director, Ricky Kho Teck Hock, said over the next 6 to 9 years, the group aimed to launch an accumulated properties of over RM3bn in value. (Bernama)

Johor Petroleum Development Corp (JPDC) has received many enquiries from supporting industries in the oil and gas sector to operate in the Pengerang Integrated Petroleum Complex (PIPC).CEO Mohd Yazid Jaafar said the presence of these industries was important to ensure the smooth running of various facilities in PIPC. "We also plan to offer financial, legal and insurance services related to the oil and gas sector. The whole ecosystem must be ready, that is our challenge," he said, JPDC is a federal government agency established to coordinate the development of the oil and gas sector in Johor. The PIPC project involves the development of 8k ha in Pengerang, of which about 2.6k ha were acquired by Petronas to develop PIPC which involved an investment of RM60bn. (Starbiz)

Lee Corp Bhd has become the latest company to join the list of Practice Note 17 (PN17). PN17 refers to a company in financial trouble because successive losses have eroded its shareholders’ funds or has ceased its business operations. A PN17 company must regularise its condition within a certain timeframe, failing which the stock will be suspended from trading and face delisting procedures. (BT)

Pestech International Bhd says the JV between its unit Pestech Sdn Bhd and Mega Linear Sdn Bhd has won a contract worth RM16.4m from  Tenaga Nasional Bhd to undertake a power project in Johor. The contract was to supply and commission a 132KV and 33KV switchgear, transformer and ancillary equipment for the Bukit Siput extension in Johor. (BT)

Naza TTDI and Australia's Lend Lease plan to undertake a mixed-use development project in the former's KL Metropolis flagship development with a potential gross development value (GDV) of RM4bn. Both companies signed a heads of agreement to formalise a joint venture to develop 10.94 acres of land at the site. In a joint statement, they said  the agreement sets the scope and commercial principles for a mixed-use development including a regional retail centre, office, hotel and residences. The agreement was executed by Naza TTDI's deputy executive chairman and group managing director, SM Faliq  SM Nasimuddin and Lend Lease's CEO for Asia, Rod Leaver. Australia's Lend Lease is a fully integrated international property and infrastructure group. KL Metropolis is Naza TTDI's 75.5-acre high-impact project with a GDV of RM15bn which it envisages would thrust the country as a preferred MICE destination in the region. CIMB Investment Bank Bhd is the financial adviser to Naza TTDI for the KL Metropolis project. (StarBiz)

Dijaya Corp plans to launch serviced residences in Kuala Lumpur at RM2,000 per square foot (psf) to RM2,500psf. Senior Dijaya Corp officials said such price is now the going rate for new luxury properties in the city centre. "We are looking at that price range for now. There are some projects launching at RM2,500psf in the city centre. Since we are launching only next year, we may re-look the pricing then," said its executive director Koong Wai Seng. Dijaya deputy managing director, Dickson Tan, said Dijaya is looking to acquire smaller developers and companies with sizeable landbank to become one of the country's biggest developers. (BT)

UMW: New centre further boosts UMW Toyota’s commitment
UMW Toyota Motor Sdn Bhd has officially opened its flagship body and paint centre at its Integrated Quality Hub (IQH) in Bukit Raja here. The centre was built on a 2.28ha site and forms an integral part of the company's over RM200m IQH. The centre is equipped with 42 work bays, four paint booths and state-of-the-art repair equipment that meet the Toyota standards and have a repair capacity of over 6,150 units per year. UMW Toyota's body and paint repair operations in Sungai Rasah will be relocated to Bukit Raja, thus providing better services to customers. (Business Times)

Scomi Group Berhad & IJM: Deal sealed in a week
The entry of IJM Corp Bhd into Scomi Group Bhd was put together in a span of a week, with both parties working around the clock to ink the agreement, sources close to the deal have revealed. Sources also explained that Scomi CEO Shah Hakim Zain had initiated the deal with IJM, driven partly by the nearing of a deadline to settle RM150m of bonds that would be due by this end month. In related developments, sources have told that IJM was likely to eventually get three board seats on the Scomi board. Sources also said that yesterday Scomi for the first time in nearly two years, had a briefing with over 30 research analysts and fund managers. (StarBiz)

IHH: Turkey unit delisted
The Istanbul Stock Exchange (ISE) has announced its approval for the delisting of Acibadem Saglik Hizmetleri Ve Ticaret AS, IHH Healthcare Bhd told Bursa Malaysia. Acibadem shares would cease to be traded on the ISE after the second session of Oct 4, it said. IHH owns 60% in Acibadem, Turkey's largest private healthcare provider. (StarBiz)

RHB: Completes second issuance of US$200m notes
RHB Bank Bhd had completed its second issuance of US$200m senior unsecured notes on Sept 28. The transaction was six times oversubscribed and the order book was well diversified. The success of this transaction is testimony of investors' confidence in RHB Bank, its credit strength, as well as the strong shareholders' support,” said its managing director Johari Abdul Muid, in a statement yesterday. (Bernama)

Digi: Tablet plans for as low as MYR15. DiGi Telecommunications Sdn Bhd has launched new offerings of affordable tablet plans from as low as RM15 monthly for postpaid customers starting yesterday. This new offering is in line with the government's nation-building exercise to make mobile broadband more affordable to the consumers. (Source: Business Times)

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